What are the reasons for putting a property into a trust? You should only consider putting assets into a trust if you are prepared to never want the income stream or the capital gains from it again. If you put a property into a trust and you want it to works for inheritance tax purposes you cannot get any of the income stream or the capital – it's an outright gift and you can’t get any of it back.

If you want to retain control over the property’s income or the right to sell it, you shouldn’t put it into a trust.

What are the taxation issues? If you put a property into a trust and there is rental income from that property, then the trust is taxed on that income at the trust tax rate – currently 45%. If you pass that income out to beneficiaries (your adult children, not minor children), they can take the income out and offset that higher rate of tax.

In terms of capital gains tax, the trust has its own allowance for capital gains tax which is different from a person’s allowance. For trusts the tax allowance is £6,000 and the rate of tax applied is 20% or 28%.

If you set up more than one trust on any given day (which we would advise you to not do), effectively all trusts will get their full allowances of £6,000.

Inevitably trust taxation is quite complicated so make sure to get advised to avoid mistakes. There are tax implications for trusts same as any other type of assets or legal entities.